What Form W-9 does
Form W-9 collects a person or business’s legal name, business type, address, and taxpayer identification number (Social Security number or EIN). It’s not filed with the IRS itself; it’s simply information one business collects from another so it can accurately report payments later, most commonly on a 1099-NEC.

Who should be collecting one
If your business pays independent contractors, freelancers, or vendors, you should be collecting a completed W-9 from each one; and ideally, before you pay them, not scrambled together in January when 1099 deadlines are looming.

Who fills it out
The contractor or vendor being paid fills out the W-9 and gives it to the business paying them; it’s the opposite direction of a 1099, which the paying business issues to the contractor.

Why this matters more than it seems
Without a W-9 on file, you may not have the correct legal name or tax ID needed to file an accurate 1099-NEC; leading to filing errors, IRS notices, or scrambling to track someone down after the fact when they’re no longer easy to reach. It also protects your business: without a valid taxpayer ID on file, the IRS may require you to withhold a percentage of payments to that contractor (“backup withholding”).

How Luminary can help
We help set up a simple system for collecting and organizing W-9s as you bring on new contractors, so when 1099 season arrives, you’re not chasing down information at the last minute; everything’s already on file and ready to go, and we will handle the filing for you.